P.M. BRIEFING : Investors Drop Talman S&L; Bid

An investor group today dropped its $700-million offer for Talman Home Federal Savings and Loan Assn., Illinois’ largest S&L.;

Talman said in a statement that Chicago area banker Harrison I. Steans, leader of the investment group, abandoned the buyout because the S&L;’s revised earnings projections fell below his original expectations.

Talman and Steans announced in May a preliminary agreement under which the Steans group would have bought the S&L; for $400 million and invested another $300 million after the acquisition to bring Talman into compliance with federal capital standards.

Talman, based in Chicago, has assets of $6 billion.

Federal regulators in March ordered Talman to stop paying dividends on its common stock until it meets new government requirements on capital.